Watch for These Key Levels in the 3 Major U.S. Indices
Following up from last week’s post on “Triple Stock Index Key Levels,” let’s take a quick mid-week update on what’s happened and what support levels continue to be key focal points in the “Big Three” US Stock Market Indexes.
Let’s start with the S&P 500:
The prior update focused on the 1,300 support bounce with the 1,275 as a likely target point should 1,300 fail – which was the case.
The resulting sell-off cascaded price towards – and just under – the 1,275 confluence which has served so far as the key if not “Make or Break” support level to watch.
This level stretches back to the polarity swing highs from late 2011, as is the case in the other Indexes (though the Dow Jones broke under these prior highs briefly).
Speaking of the Dow, let’s update the current picture:
In the prior update, the 12,200 was the interim support which – when broken – targeted the “round number” 12,000 confluence.
So far – like the S&P 500 – the Dow has rallied initially off the 12,000 level which can be viewed in part as a “psychological” or “easy-reference” support.
It will be the index level to watch for any sign of breakdown – an absence of a break under 12,000 allows for a higher rally into resistance.
The NASDAQ also successfully rallied – so far – from its 2,750 key support confluence:
The picture is similar to that of the S&P 500 where the late 2011 swing highs (polarity) held as current support.
#-ad_banner-#The “polarity” level overlapped with the rising 200 day SMA into the 2,750 region (2,760 to be exact) and now it’s up to the buyers/bulls to rally the index and defend support.
In this quick “support check-up,” it’s important to incorporate these key Daily Chart levels into the methods and strategies you’re using currently.
These levels are most likely the critical support reference levels that could spark action – an initial rally from here (which would be logical) or else a potential sharp sell-off should these levels fail as support.
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